Sleep Number's Q1 Earnings Miss Street View

Sleep Number Corp SNBR reported a first-quarter FY22 sales decline of 7% year-on-year to $527 million, missing the consensus of $540.32 million.
The demand decreased 3% for the quarter, reflecting the impact of Omicron in January and the war in Ukraine in late February.
The gross margin for the quarter contracted by 530 basis points to 57.3%.
The operating expenses for the quarter rose 6.6% Y/Y to $297.9 million.
Operating margin was 0.8% versus 13.4% last year. Operating income for the quarter fell 94.2% to $4.4 million.
The company held $1.6 million in cash and equivalents as of April 2, 2022. Net cash provided by operating activities for the quarter totaled $24.6 million.
EPS of $0.09 missed the analyst consensus of $0.35.
"External factors continue to disrupt global supply and weaken consumer confidence, resulting in increased business complexity and volatility," said CEO Shelly Ibach.
Outlook: Sleep Number sees FY22 EPS of $5.00 - $6.00, against the consensus of $5.77.
It expects low double-digit net sales growth for FY22.
Price Action: SNBR shares closed lower by 1.64% at $51.47 on Wednesday.

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